In a significant financial move, Odisha Chief Minister Mohan Charan Majhi presented a substantial supplementary budget of Rs 17,440 crore on Friday, propelling the state's total budget allocation for the current fiscal year beyond the Rs 3 lakh crore mark for the first time.
Key Allocations for Welfare Schemes
The fresh financial provisions specifically target two flagship initiatives that were central to the government's election promises. A substantial Rs 850 crore has been allocated for input assistance to farmers under the paddy procurement program, while Rs 295 crore has been designated for the newly launched Subhadra cash incentive scheme for women.
With this additional funding, the total allocation for farmer assistance under the Samrudha Krushaka Yojana has increased to Rs 6,850 crore, up from the earlier Rs 6,000 crore. The scheme provides farmers with Rs 800 per quintal of paddy beyond the minimum support price.
Boost to Agriculture and Urban Development
Chief Minister Majhi, who also holds the finance portfolio, further strengthened the agricultural sector by allocating Rs 3,000 crore under the revolving fund for paddy procurement. This comes in addition to the Rs 2,000 crore already allocated in the main budget presented in February.
The Subhadra Yojana, a women-centric welfare program, has seen its total allocation rise to Rs 10,440 crore from the initial Rs 10,145 crore. Urban development also received a significant push with an additional Rs 100 crore earmarked for the Mukhyamantri Sahari Vikas Yojana, taking the scheme's total allocation to Rs 1,200 crore.
Department-wise Breakdown and Fiscal Health
The food supplies and consumer welfare department emerged as the largest beneficiary of the supplementary budget, receiving Rs 4,329 crore, out of which Rs 1,325 crore is specifically for subsidy under the public distribution system.
Odisha Adarsha Vidyalayas, the government's CBSE-affiliated schools that have been grappling with staff shortages and infrastructure challenges, received Rs 320 crore in the supplementary budget, supplementing the Rs 997 crore provided in the main budget.
Majhi emphasized that the supplementary expenditure statement for 2025-26 complies with Fiscal Responsibility and Budget Management (FRBM) norms, noting that all provisions are backed by resource adjustments or additional revenue sources.
The state government expects to maintain a revenue surplus while keeping the fiscal deficit at approximately 3% of GSDP and restricting the debt-to-GSDP ratio within the mandated 25% limit. Current indicators show Odisha has recorded a 1.3% revenue surplus, an 11.9% debt-to-GSDP ratio, and a 2.2% interest payment-to-revenue receipt ratio until October.
The capital outlay for 2025-26, including the supplementary provision, is projected to exceed 6% of GSDP – a strategic move aimed at stimulating economic growth while continuing to fund essential welfare and development programs across the state.
